TBD on Ning

The 6.5% solution....

So now we know, the Fed, ever vigilant can start to look the other way when the unemployment number falls to 6.5%.

Now, of course it was about fifty years ago, when I was in class, the number for full employment was 4% and was most important goal of those that were concerned and that could influence that number which represented the stable state of economic activity and labor markets in this country. But of course things change, and changing the distance of the goal posts is part of that change. Sorta like, changing the kick off in the NFL as not happening, and starting the change of possession on the twenty five yard line and not expose players to the trauma of running down the field with abandon and crashing into each other and suffering consequences, but I digress.

Nope, the number is really 2.5% higher and over 3 million jobs less, to be good enough and for the Fed to say that their work is done. But then again, what do people know about the Fed anyway, and with is "QE", really, and does it do any good, inquiring minds want to know, or not.